With COP30 in Brazil less than a month away, the world’s attention is turning to the elusive promise of adaptation finance — money meant not for cutting emissions, but for surviving their consequences. In New Delhi this week, a closed-door High-Level Roundtable on Adaptation Finance, organised by Climate Trends, brought together senior policymakers, economists, and global climate finance experts. The message that emerged was stark: India’s adaptation needs are vast, but the money isn’t flowing.

According to international estimates, while adaptation finance globally rose from USD 22 billion to USD 28 billion in 2022, developing countries require more than USD 350 billion annually to protect lives and livelihoods. India’s share of that unmet need remains enormous — and more than 60% of global adaptation finance still comes as loans, piling additional debt on already stressed economies.

“The geopolitics of the world is at an inflection point,” said Aarti Khosla, Director of Climate Trends. “Countries are wrestling with how to make the Global Goal on Adaptation practical and measurable. India is preparing to submit its first National Adaptation Plan. The quality of the finance also matters — because commitments made at multilateral fora are only as good as the systems that deliver them.”

The Growing Cost of Climate Impacts

India’s climate vulnerabilities are intensifying. Record-breaking heatwaves, erratic monsoons, floods, and agricultural losses have already dented GDP growth, with studies suggesting climate-linked economic damage could shave off 2–3% of India’s GDP by 2030. The country’s adaptation costs, as projected by several national and international assessments, could run into tens of billions annually.

Yet, domestic and international systems remain mismatched to that reality. “Adaptation needs to be built into a profitable market system that attracts private investment and creates entrepreneurial enterprise,” argued Abhishek Acharya, Director at the Ministry of Environment, Forest and Climate Change (MoEFCC). “We need a strong policy framework that enables even the last tier of governance — municipalities, panchayats — to access funding.”

The challenge, experts noted, isn’t just about the quantum of funds, but their design. India’s adaptation funding is fragmented across ministries and states, with little clarity on effectiveness. “We should be looking at adaptation-relevant expenditures,” said Amrita Goldar, Senior Fellow at the Indian Council for Research on International Economic Relations (ICRIER). “Looking through budgets at both central and state levels is a big task by itself. For adaptation, we don’t even have a sense of how technologies will evolve. When technologies are niche, private finance will not lead — public finance must.”

The Global Architecture and Local Realities

The Global Goal on Adaptation (GGA), first established under the Paris Agreement, remains largely conceptual — a vision still waiting for metrics. COP30 could change that, with countries expected to finalise indicators for tracking adaptation progress. Yet, experts warn that measurement alone won’t build resilience.

“If GGA indicators get finalised at COP30, they will become a yardstick for evaluation and performance,” said Pushp Bajaj, Programme Lead at Council on Energy, Environment and Water (CEEW). “But just measuring progress isn’t enough. The connections with real climate challenges must be explicit, and India should take a strong stand.”

For India, where agriculture, water, health, and heat stress are already colliding crises, effective adaptation requires reforming both global finance flows and domestic fiscal systems. Kathryn Miliken, Senior Climate Change Specialist at the Asian Development Bank (ADB), noted that adaptation finance forms only about 10% of total climate finance worldwide. “ADB is aiming for 30% of its portfolio to go toward adaptation,” she said. “But the larger challenge is mainstreaming adaptation into economic planning. It still hangs loosely as a standalone agenda.”

Governance Gaps and Subnational Needs

At the state and district levels, limited financial autonomy has hindered locally relevant adaptation measures. Arjun Dutt of CEEW observed, “Coastal embankments, water shelters — these are public goods. Local authorities are directly involved, but though we have devolution in the Constitution, financial powers have not been devolved.”

Experts argued that subnational access to climate finance — through mechanisms like resilience bonds, blended finance, and state adaptation funds — could be the next big step. “Adaptation is a local issue,” said Amir Bazaz, Head of Infrastructure and Climate at the Indian Institute for Human Settlements (IIHS). “We don’t have the capacity to develop projects that are locally embedded, and resources are insufficient. Investments are largely driven by returns, not resilience.”

The Politics of Adaptation

Beyond numbers, adaptation is deeply political. “We understand the global game of power evolving around energy,” said Ambassador Manjeev S. Puri, Distinguished Fellow at TERI. “It’s time for us to talk about adaptation in a louder manner — both locally and globally. Link adaptation to resilience, and you will find political buy-in.”

Ovais Sarmad, Vice Chair of the Greenhouse Gas Protocol, added a sobering global view: “We’re living in a world that’s moved from VUCA — volatile, uncertain, complex, ambiguous — to BANI — brittle, anxious, non-linear, incomprehensible. India must be actively engaged in discussions at the Standing Committee on Finance. Our position must be clear and people-centred.”

The Standing Committee on Finance (SCF), part of the UNFCCC structure, plays a key role in shaping how climate funds are allocated and monitored — including reforms in Multilateral Development Banks (MDBs). Several participants at the roundtable called for MDBs to increase concessional finance and reduce the loan-heavy structure of current adaptation flows.

Data, Delivery, and Diplomacy

For experts like Purnamita Dasgupta, Head of the Environmental and Resource Economics Unit at the Institute for Economic Growth, the way forward lies in clarity and pragmatism. “We want a lot of things, but we need to split this conversation into high-level messages and those we keep within our borders,” she said. “There’s no case for being overwhelmed. Development is the only solution. We should not wait for a magic number, nor ignore it.”

The final consensus from the roundtable was clear: India’s leadership on adaptation finance will depend on how well it aligns data, policy, and diplomacy. As the country prepares to submit its first National Adaptation Plan (NAP) to the UNFCCC, its approach could influence not just negotiations at COP30, but also how the Global South reframes adaptation as a cornerstone of economic growth.

“Adaptation is no longer a technical footnote to mitigation,” Khosla concluded. “It’s about protecting people, ensuring justice, and redesigning the financial systems that decide who gets to survive the climate crisis — and how.”